US Crypto Miners vs EIA: Energy Usage Survey Challenge

Several key figures in the United States cryptocurrency mining industry have expressed concerns about a recent emergency survey initiated by the U.S. Energy Information Administration (EIA) to measure energy consumption by mining firms. The EIA received approval in January 2024 to collect data on electricity usage from local mining companies on a provisional, mandatory basis. The goal of the survey is to identify electricity sources for cryptocurrency miners and regions with concentrated mining activity. Some mining firms and blockchain industry organizations have questioned the legality and motives behind the survey, suspecting political motivations. They argue that the survey unfairly targets the cryptocurrency mining industry and lacks transparency. They question why other energy-consuming industries have not faced similar mandatory data collection measures.

Lee Bratcher, the president of the Texas Blockchain Council, criticized the survey as an abuse of authority and a politically motivated campaign against Bitcoin mining and U.S.-led innovation. He argued that the survey overlooks the industry’s use of renewable energy and its ability to adjust power usage according to grid conditions. Riot Blockchain, another mining firm, echoed these concerns and labelled the survey an attempt to avoid administrative procedures. They suggested that the survey is driven by U.S. Senator Elizabeth Warren, who opposes cryptocurrencies. Taras Kulyk, CEO of SunnySide, a company that provides infrastructure to mining firms, raised the issue of double standards, questioning why other energy-intensive industries were not subject to the same data collection measures. Kulyk argued that singling out the digital mining sector suggests a political attack rather than a genuine concern for energy consumption.

Riot Blockchain also cautioned that the survey sets a dangerous precedent for government agencies to overstep their boundaries regarding sensitive industry data. They expressed concern that private information could be made public, allowing political activists to cherry-pick data to target legitimate businesses. Colin Harper, head of research and content at Luxor, a Bitcoin mining software company, criticized the survey as alarmist and highlighted the EIA’s past failed attempt to collect data on data center power use. He questioned why Bitcoin miners were being singled out in a standalone survey when data centers at large had not undergone a full-scale survey.

Key figures in the cryptocurrency mining industry are skeptical about the emergency survey conducted by the EIA. They suspect that political motivations are behind the survey and believe that other industries should also be subject to similar data collection measures to maintain fairness. They caution against the potential misuse of private industry data by government agencies.